Automotive Components Industry Proposes US Reciprocal Tariff

REPUBLIKA.CO.ID, JAKARTA -- The Automobile and Motor Tool Industry Association (GIAMM) proposes that the government apply reciprocal United States (U.S.) countervailing tariffs against Indonesian products. It's as a fairer trade short-term solution.

“If they charge high rates, we need to adjust. Tariffs are reciprocated rates. But also do not forget other options such as lowering tariffs for US products in order to achieve balance,” GIAMM Secretary General Rachmat Basuki said in Jakarta, Sunday (6/4/2025).

He said it was concerned over the policy's impact on the nation's auto components industry. GIAMM considers it necessary for a strategic government step in addressing this situation, given that national exports of automotive components to the United States currently occupy the second largest position after Japan.

“It certainly has a big impact on our industry, because previously the tariffs coming into the US were relatively small. Meanwhile, American products coming into Indonesia are subject to much higher tariffs,” Basuki said.

In addition, it highlighted the potential flood of automotive component products from China to the Indonesian market as a result of US trade policies towards the country.

As a solution, in addition to imposing tariff barriers adjustments, GIAMM encourages the implementation of nontariff barriers such as Domestic Component Level (TKDN) policies and Indonesian National Standards (SNI) to protect national industries from the onslaught of imported goods that are not competitive in quality and price.

It called on the government to continue to strengthen trade diplomacy with partner countries and ensure that national industries are adequately protected, in order to keep growing and contributing to the economy. “Despite the challenges, we remain optimistic. The American market is still open. As long as the tariffs imposed on China are not lower than ours, domestic producers still have a chance to compete. ” he exclaimed.

US President Donald Trump on Wednesday (2/4) announced tariff hikes of at least 10 percent to many countries around the world, including Indonesia, on goods entering the country.

According to a White House Instagram post, Indonesia ranks eighth on the list of countries affected by the U.S. tariff increase, at 32 percent.

About 60 countries will be subject to reciprocal tariffs half of the tariffs they impose on the United States. Based on the list, Indonesia is not the only country in Southeast Asia to fall victim to U.S. trade.

Malaysia, Cambodia, Vietnam and Thailand have increased tariffs of 24 per cent, 49 per cent, 46 per cent and 36 per cent respectively.

sumber : Antara